Question

Amelia has a savings account that has an annual yield of 5.2%. Find the balance of the account after each of the first five years if

her initial balance is $2000.​

Answer 1

Balance of the account after 5 year = $2,577 (Approx)

Explanation:

Given:

Initial deposit = $2000

Annual yield (r) = 5.2% = 5.2 / 100 = 0.052

Number of year (n) = 5 year

Find:

Balance of the account after 5 year = ?

Computation:

`Amount = Initial\ deposit(1+r)^n\\\\Amount = 2,000(1+0.052)^5\\\\Amount = 2,000(1.052)^5\\\\Amount = 2,000(1.28848302)\\\\Amount = 2,576.96604`

Balance of the account after 5 year = $2,577 (Approx)